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Author Question: Assuming an decrease in money demand, then to keep interest rates constant the Fed must a. keep ... (Read 113 times)

storky111

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on: Jun 30, 2018
Assuming an decrease in money demand, then to keep interest rates constant the Fed must
 
  a. keep the money supply constant.
  b. conduct an open market sale of bonds.
  c. reduce the required ratio.
  d. both b and c.
  e. None of the above

Question 2

If the short-run aggregate supply curve is shifting down repeatedly, it is rather likely that ________.
 
  A) output is declining repeatedly, relative to potential output
  B) the long-run aggregate supply curve is shifting to the left
  C) negative price shocks are recurring
  D) all of the above
  E) none of the above


asware1

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

E


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